City of Bend OKs $500K in grants for pilot project to help provide badly needed middle-class housing

(Update: Adding video, statements from program coordinator, KTVZ.COM Poll)

BEND, Ore. (KTVZ)-- Bend city councilors have approved $500,000 worth of grants in a pilot program to support creation of more housing for middle-income residents. Three organizations were awarded funding to help "bridge the gap between market rate and household earnings," according to the issue summary provided to councilors.

"Historically, the middle-income household or the middle-income workforce could afford homes in that market rate range. And that's just not the case here any more," city Middle Income Housing Coordinator Kerry Bell said Monday.

Middle-income housing is for those earning 80% to 120% of the area's median income. In Bend, a family of four with an annual income of about $75,000 to $110,000 falls into that category.

"This was a pilot program, and by nature of it being a pilot program, we were really looking to find out those key areas where incentives might help just push a project to that affordability and provide more housing for our community members," Bell said.

Councilors agreed to allocate $75,000 to a joint project between Habitat for Humanity and Hiatus Homes. One home will be built on a vacant lot at the corner of Wilson Avenue and 15th Street that will be accessible to those with disabilities. The goal is to build a home that can be easily replicated by Habitat for Humanity for future middle-income homes with similar needs.

Also, $200,000 was awarded to NeighborImpact for first-time home buyer down payment assistance. The program plans to allocate $40,000 to five first-time middle-income home buyers, to help with down payments.

After much discussion about the details of Affordable Housing Advisory Committee recommendations, councilors shifted $225,000 from a Hayden Homes project at Woodside Court to Hiatus Homes' planned 59 "micro-unit" apartments on Penn Avenue -- is they can meet the condition of a 10-year deed restriction on at least 18 units to households making up to 120% of the area's median income.

"This has really given the city an opportunity to see just exactly where we might partner with folks in the future, whether that's employers or developers or affordable housing providers, where we may partner in the future, should we secure other sources of funding in the future," Bell said.

Below is the staff's issue summary and presentation from last week's meeting: